HB5:

Flood Relief Fund; established.

Bill Summary:

Flood Relief Fund established. Establishes
the Flood Relief Fund (the Fund), funded by reducing the allocation
of Regional Greenhouse Gas Initiative (RGGI) funds to the Community
Flood Preparedness Fund from 45 to 40 percent and allocating the five
percent to the Fund. The Flood Relief Fund is administered by the
Virginia Department of Emergency Management (VDEM) and used to make
payments to owners of property that is damaged by a flood, landslide,
or mudslide for which the President declares a major disaster under
the federal Stafford Act. Under the bill, claims are paid at 175 percent
of property value in a double distressed locality, 150 percent of
property value in a distressed locality, and 100 percent of property
value in all other localities. Claims are limited to $1 million for
commercial properties and $500,000 for residential properties and
are exempt from individual and corporate income tax. If there are
no flood disasters, VDEM will award grants for flood prevention efforts
to applicants in double distressed localities. The bill provides that
if Virginia withdraws from RGGI, $50 million of any unobligated auction
proceeds will be reallocated to the Fund from the accounts established
for flood preparedness and low-income energy efficiency programs.